Harry Markopolos's ideas on what to do about the SEC

Harry Markopolis's ideas on how to fix the SEC :

‘Too Many Attorneys’

“My bet is that Ms. Schapiro will find that she has too many attorneys and too few professionals with any sort of financial background,” he said.

The regulator will only attract employees who understand balance sheets, income statements, derivatives and complex trading strategies if it adopts the “industry’s compensation guidelines,” Markopolos said.

Schapiro should set up a central office to respond to all whistleblower complaints, which are handled by the agency’s regional bureaus on an “ad hoc basis,” he said. Markopolos also said the new chairman should consider relocating the SEC to a city in the U.S. Northeast from Washington.

“Washington is a political center not a financial center,” he said. “If the SEC wants to attract the top talent, relocating its headquarters to somewhere between Rye, New York, and New Haven, Connecticut, is where this agency will best attract the foxes with industry experience it so desperately needs.”